US casual fashion retailer Forever 21 is reviewing its entire UK store portfolio, as it continues to struggle in the competitive British market.
Forever 21 Westfield
It currently has stores at Birmingham Bullring, Bluewater shopping centre in Kent, Liverpool city centre and on London’s Oxford Street.
Sources told Drapers the retailer is considering all options for its remaining UK stores, including downsizing or pulling out of the UK entirely.
The retailer closed its Scottish flagship in Glasgow in April and its store in Westfield Stratford in May. It previously closed its store at Intu Trafford Centre last year. It will also shortly close its store at Intu Lakeside in West Thurrock.
Forever 21 launched in the UK in 2010 but its stores have not performed to expectations or are overspaced, a source close to the situation said.
In its latest accounts filed at Companies House, turnover at Forever 21’s UK arm increased from £37.1m to £48.3m for the year to February 28, 2014. It reduced its pre-tax loss to £18.4m from £66.5m the previous year. Its 2015 accounts were due to be filed by November 30 and are still overdue.
A spokeswoman for Forever 21 said: “Forever 21 is constantly evaluating its portfolio of stores and works with several third party consultants on these efforts, in order to carefully asses the long-term profitability of store locations. We will continue to provide our customers with access to the fast fashion they have come to love and expect from Forever 21 on our website and in stores across the region.”
The company is represented in the UK by property advisor Harper Dennis Hobbs, which was unavailable for comment.